India’s Big Plans for Electric Vehicles: Huge Growth Expected by 2033
The global electric vehicle (EV) market, valued at USD 255 billion in 2023, is expected to grow significantly, reaching USD 2,108 billion by 2033. This growth, with a compound annual growth rate (CAGR) of 23% from 2024 to 2033, shows the increasing demand for sustainable mobility solutions.
India’s EV market is projected to reach annual volumes of 10 million units by 2033, a big jump from the 1.7 million units recorded in FY24. This change will be driven by favorable government policies, new products, lower costs, and rapid technological advancements. India is expected to lead this EV revolution.
Over the next decade, significant EV adoption is expected in key vehicle segments, including three-wheelers (3W), two-wheelers (2W), electric buses, and passenger vehicles. The segment is expected to grow further as infrastructure improves and more affordable models enter the market.
A total of Rs 10,900 crore in subsidies has been allocated over the next two years to promote the adoption of electric two-wheelers, three-wheelers, and buses. The scheme aims to support the sale of 24.79 lakh e-2Ws, 3.16 lakh e-3Ws, and 14,028 e-buses. Additionally, each electric two-wheeler will receive a subsidy of Rs 10,000, while electric three-wheelers will receive Rs 50,000 until March 2025.
To encourage the adoption of electric trucks and ambulances, Rs 500 crore has been earmarked for e-trucks, with incentives linked to scrappage certificates from approved scrapping centers. Another Rs 500 crore has been set aside for the deployment of e-ambulances, including hybrids, showing the government’s commitment to modernizing emergency services.
A critical aspect of promoting EV adoption is the development of charging infrastructure. To address this need, the government has committed Rs 2,000 crore to establish electric vehicle public charging stations across the country. This will support the installation of 22,100 fast chargers for electric four-wheelers, 1,800 chargers for electric buses, and 48,400 chargers for electric two-wheelers and three-wheelers.
In a bid to make electric vehicles more affordable, the Indian government has also introduced favorable tax rates for EVs. Electric cars are taxed at just 5%, compared to 28% on hybrid vehicles and a steep 49% on internal combustion engine (ICE) vehicles.
Doubts Revealed
Electric Vehicles (EV) -: Electric Vehicles are cars, bikes, or buses that run on electricity instead of petrol or diesel. They are better for the environment because they don’t produce pollution.
USD -: USD stands for United States Dollar, which is the currency used in the United States. It’s often used to compare money values worldwide.
CAGR -: CAGR stands for Compound Annual Growth Rate. It shows how much something grows every year over a period of time.
Subsidies -: Subsidies are financial help given by the government to make things cheaper for people. In this case, it’s money to help make electric vehicles more affordable.
e-2Ws -: e-2Ws stands for electric two-wheelers, like electric scooters and bikes.
e-3Ws -: e-3Ws stands for electric three-wheelers, like electric auto-rickshaws.
e-buses -: e-buses are electric buses that run on electricity instead of diesel or petrol.
Charging infrastructure -: Charging infrastructure means the places and equipment needed to charge electric vehicles, like charging stations.
Tax rates -: Tax rates are the percentage of money that people have to pay to the government when they buy something. Lower tax rates on EVs make them cheaper to buy.
